WILMINGTON, NC (WWAY) — A Wilmington Accountant is warning taxpayers to take caution when filing their 2020 tax returns, if they receive Affordable Care Act subsidies, also known as Obamacare.
The subsidies help individuals pay for healthcare, but those receiving the money must meet the income limitations to remain eligible. Going over the limit could require you to pay back thousands of dollars in ACA subsidies. Accountant Michael Traflet has tips to help keep more money in your pocket this tax season.
“Then you start thinking about funding that IRA, funding that HSA. Those things have to be done by April 15. So, it’s not too late to do this. You would have to make the contribution to those vehicles by April 15, but it treated it as a deduction on your 2020 return, and then you don’t have to give back any money or by far, not much,” said Michael Traflet.
Traflet also recommends seeking assistance from a certified professional accountant if you are concerned about where you fall when it comes to ACA subsidies.